Is my dad taking advantage of me?

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12/01/2015 12:18

Subject: Is my dad taking advantage of me?

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Anonymous

So, I am in a pretty complicated situation with my dad, I know I really shouldn't have gotten myself into this situation to begin with, but that is done and there is nothing I can do about that.

Last year, my dad came to me asking me to purchase two medical clinics. He was managing the clinics and the owner was moving to California and selling them, they are located out of state. My dad could not purchase them directly because he cannot be a licensed owner due to legal troubles and felonies in his past. I agreed to purchase them, no one put any money up front, the owner is taking $8k payments per month (purchase price of $400k, owe about $300k now). I am on all legal paperwork, I am the sole owner, I am on all licensing, insurance, etc. I am also an attorney and do a significant amount of the legal work for the clinics, contracts, employment agreements, non-competes, etc. I spend maybe 10 hours a week on work for the clinics. I have tried to nail down the split of profit with my dad, but he refuses to put anything in writing and now that I am trying to nail him down on a number, he keeps lowering my "portion."

Basically, he has been taking all the profits and giving me $2k/month. I found out recently he has been taking $10-$20k/month. This month I made him allot for all monies and he took $15,000 and I took $4,500. He runs the day to day operation of the clinics, but really is not very good at is, is very abrasive to staff, causes high staff turnover, etc. He went to Europe for a month, still took $20,000k and no one missed him. He is also paying his wife a salary of $6k/month as a receptionist. I should also note that he was appealing the state board, who said he could not work in the clinics at all because of his background, and it appears that he will lose his appeal. If this happens, he will be totally unable to work in any capacity at the clinics, but he still intends on taking his full monthly salary, even if he is not working.

For context, he was very abusive, physically and mentally, for most of my childhood. While I feel I have mostly moved past this, he is still very manipulative and has some unhealthy mental control on me, I recognize this and am trying to work through it. He tells me that I am greedy and only love money, and I am taking too much money from the clinics, etc etc etc.

At this point, he said that I am entitled to $2k/month as salary, and he takes $8k/month salary. Then on any profits over and above this, I get 25% and he gets 75%.

We have an offer to buy the clinics for $1.5 million, after real estate fees and paying off the first owner, we would have about $1mil remaining, after taxes more like $800k. If we sell, he insists that he will receive 75% and I would receive 25%. Does this seem fair? Am I being unreasonable?

What should I do? My husband wants me to go down there, put in a reasonably priced manager, kick him out (he has no legal right to the clinics) and take all of the profits. I think it is too difficult to try and manage a clinic from 1500 miles away, and because it is mostly a cash clinic, I don't know who I could really trust.

If it matters at all, my husband and I have a very normal life, we make about $175k a year apart from the clinics, we have 4 kids, and while we do okay, we are not wealthy, and have a lot of expenses to pay (including $200k in student loans). We live a very modest pretty quiet life, no extravagant vacations or cars.

He has a 26 year old Russian wife who has a 5 year old son, they go on trips to Europe, take expensive vacations, drive expensive cars, etc. He did not support me financially for most of my life, I left home when I was 13 due to the abuse.

Thanks for taking the time to read and offer insight.